Property Insurance for UAE Businesses

It isn't required by law, but it's often required in practice. Landlords frequently require tenants to insure their fit-out and contents, and banks require property insurance on any premises or assets they finance. Even when optional, it protects a business from losses that could be impossible to recover from.

Fire & Allied Perils only covers the events listed in the policy, such as fire, lightning, explosion, storm and flood. Property All Risks covers physical loss or damage from any cause unless it's specifically excluded, so it gives wider protection. All Risks usually costs more, but leaves fewer gaps.

Business interruption covers the income you lose and extra costs you face if insured damage forces your business to close or slow down, such as after a fire. Property insurance pays to repair the building; business interruption keeps the business running while it's repaired. Any business that couldn't easily survive months of lost income should consider it.

The sum insured should reflect the full cost of rebuilding or replacing your property and contents today, not what you originally paid. If you insure for less, most policies apply an "average" clause, meaning the insurer reduces every claim in proportion to the shortfall, even small ones. Reviewing values every year avoids this.

Yes, if they're included in the sum insured. Stock can be insured at a fixed value or on a declaration basis, where you report stock levels regularly and pay premium on actual values. This suits businesses whose stock levels change through the year.

Usually, yes. Storm and flood are standard perils under Fire & Allied Perils and are normally covered under Property All Risks unless excluded. Since the April 2024 floods in the UAE, some insurers have reviewed their terms, so it's important to check the deductibles and conditions that apply to flood in your policy.

Usually the landlord insures the building structure, while the tenant insures its own fit-out, equipment, stock and contents. Your lease will set out exactly who is responsible, so check it before arranging cover.

Insurers look at the sum insured, the type of building and how it's built, what the premises are used for, fire protection and security measures, the location, and your claims history. Good fire safety measures can noticeably reduce the premium.